Determining what should inform the interpretation of a contract
is a little bit like the debate of nature versus nurture – is
the proper interpretation innate in the words and context of the
document, or does it receive its meaning from the commercial
environment?
In the recent decision from the Alberta Court of Appeal, Trico
Developments Corporation v El Condor Developments Ltd, 2020 ABCA
132 the majority emphasized the importance of the commercial
context when interpreting an agreement. However, the dissent by
Justice Slatter calls into question the majority's
interpretation and relies more on the words in their contractual
context.
Background
At issue was the definition of the word 'value' as it
was used in a Settlement Agreement between Trico Homes and El
Condor. The two parties had formed a partnership in 2004 to develop
property in southwest Calgary. They sold their respective interests
in the lands to the partnership and in return they
